The RIA Novosti news agency quotes the Kiev government’s press service reporting Mr Yanukovych’s comments, however other reports suggest that no firm price has yet been finalized.

Mr Yanukovych traveled to the Black Sea resort of Sochi for talks with his Russian counterpart, Mikhail Fradkov. The RIA Novosti report claims that the $95 price will remain in place for 2006, but that next year, prices for imported gas to Ukraine will be based on market rates.

The prices will be based on a market framework and the mechanism for their calculation will be transparent and will correspond to the level of economic relations between Ukraine and Russia, Mr Yanukovych was quoted as saying by the BBC.

The Ukrainian also hinted that Kiev will seek to take a more conciliatory stance in discussions with Russia on strategic issues following the gas crisis seen at the turn of the year. Mr Yanukovych is the newly-appointed prime minister of Ukraine and is known for his pro-Russian leanings, while the country’s president, Viktor Yushchenko, is far more western in his outlook.